In September 1940 the Minister of Supply (H.Morrison) supplied a memo (CAB 67/8/40) which informed the British War Cabinet of a possible serious setback to the British munitions programme. The issue lay with the US Defence Advisory Committee which had stated on July 21st:-
that our total orders inc those taken over from the French covered 60% of the machine tool capacity of the US available until the end of 1940 and expressed the opinion that this was in excess of the UK's vital war needs. They therefore opposed the export of machine tools into areas exposed to bombing, except where such tools were required to finish off facilities etc. As a result of the Committee's action the whole of the exports from America were put under licence and we were required to justify each purchase
My emphasis
Now by either the end of November or December 1940 this issue was resolved through an agreement, however I cannot find any details of this said agreement. Any knowledge or pointers gratefully received
Regards
Andy H